Businesses that cannot pay living wage are not sustainable: ACCA expert

KUALA LUMPUR: Businesses that cannot afford to pay a living wage do not effectively have a sustainable model and will need to prepare to deal with future shocks from economic, climate, or natural crises. ACCA Asia-Pacific senior policy consultant Sharath Martin said businesses have to recognise that paying wages that workers need in order to have a decent standard of living is a matter of human rights. “Paying minimum wages just isn’t good enough, especially when such wage levels are very low. We often assume that cost increases from paying additional wages may adversely hit small and medium enterprises. “However, today, such businesses may have to deal with high staff attrition, rehiring and retraining costs, and loss of productivity, which affect their bottom line. “To overcome these barriers, companies can focus on the benefits of paying a living wage, such as increased employee motivation and productivity, reduced turnover and enhanced brand reputation. “Businesses…